Kan företagsekonomisk utbildning inom mikrofinans minska risken av utebliven betalning?: En fallstudie av Indien
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
In developing countries, financing to the rural poor through formal financial services often fail to meet the credit requirements since the poor often lack physical collateral to secure the repayment of the loans. The failure in providing banking financial services to the poor has minimized their business opportunities, giving them no chance but borrowing money from local money markets with huge interest rates. Microfinance program is an effort to reduce poverty and improve life quality for the poor in rural areas. This program enables borrowers who do not have any physical collateral but still can borrow small loans in order to realize their business ideas. However, despite many positive achievements, microfinance still faces the challenge regarding default risks. The default in microfinance situation is when the borrowers are not able to fulfill their duties in repaying back the loans. The purpose of this thesis is using a qualitative case study to find out whether the combination of business education and microfinance institutions can reduce default risk and increase repayment rate. The findings of our investigation indicate that there is positive impact of business training on repayment rate in the case of India. We found that the microfinance institution, which offers business training to its clients, has higher repayment rate and less default than the one in which no business training is offered. In addition, we also found that the caste system in India has no effects on our target interview group’s business practices. However, we believe that in order to achieve the goal of poverty alleviation and provide sustainable financial services in the long run, microfinance institutions need to find additional innovations to manage the loans and reduce the default risk.
Place, publisher, year, edition, pages
2013. , 52 p.
Social Behaviour Law
Samhälls-, beteendevetenskap, juridik, business education, caste system, target women, self- help groups, high interest rates, graduated loans, microfinance, repayment rate, default risk
IdentifiersURN: urn:nbn:se:ltu:diva-54737Local ID: ba9f0e24-4fb6-45f1-bba8-d71e2a2dcc6eOAI: oai:DiVA.org:ltu-54737DiVA: diva2:1028119
Subject / course
Student thesis, at least 15 credits
Business Administration, bachelor's level
Ek Styvén, Maria
Validerat; 20130624 (global_studentproject_submitter)2016-10-042016-10-04Bibliographically approved